RocketFuel Blockchain (OTCMKTS:RKFL – Get Rating) and American Software (NASDAQ:AMSWA – Get Rating) are both small-cap business services companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, valuation, profitability, analyst recommendations, risk, dividends and earnings.
Valuation & Earnings
This table compares RocketFuel Blockchain and American Software’s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| RocketFuel Blockchain | N/A | N/A | -$2.36 million | ($0.21) | -0.86 |
| American Software | $111.41 million | 5.05 | $8.09 million | $0.37 | 45.35 |
American Software has higher revenue and earnings than RocketFuel Blockchain. RocketFuel Blockchain is trading at a lower price-to-earnings ratio than American Software, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares RocketFuel Blockchain and American Software’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| RocketFuel Blockchain | N/A | -551.72% | -414.75% |
| American Software | 10.09% | 9.77% | 6.88% |
Analyst Ratings
This is a summary of current ratings for RocketFuel Blockchain and American Software, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| RocketFuel Blockchain | 0 | 0 | 0 | 0 | N/A |
| American Software | 0 | 1 | 3 | 0 | 2.75 |
American Software has a consensus price target of $32.33, indicating a potential upside of 92.69%. Given American Software’s higher possible upside, analysts plainly believe American Software is more favorable than RocketFuel Blockchain.
Volatility & Risk
RocketFuel Blockchain has a beta of 0.99, indicating that its stock price is 1% less volatile than the S&P 500. Comparatively, American Software has a beta of 0.83, indicating that its stock price is 17% less volatile than the S&P 500.
Insider and Institutional Ownership
2.4% of RocketFuel Blockchain shares are owned by institutional investors. Comparatively, 82.1% of American Software shares are owned by institutional investors. 9.7% of American Software shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Summary
American Software beats RocketFuel Blockchain on 11 of the 12 factors compared between the two stocks.
RocketFuel Blockchain Company Profile (Get Rating)
RocketFuel Blockchain, Inc. focuses on developing payment and check-out systems for purchases on e-commerce sites using cryptocurrencies and direct bank transfers. The company has a strategic partnership with ACI Worldwide, Inc. to offer the company’s solution through a single integration enabling merchants to accept cryptocurrency payments with no processing fees. RocketFuel Blockchain, Inc. was incorporated in 2018 and is headquartered in San Francisco, California.
American Software Company Profile (Get Rating)
American Software, Inc. develops, markets, and supports a range of computer business application software products in the United States and internationally. It operates through three segments: Supply Chain Management (SCM), Information Technology Consulting (IT Consulting), and Other. The SCM segment provides demand optimization, inventory optimization, supply optimization, retail optimization, quality and compliance, PLM, sourcing management, and integrated business planning services. The IT Consulting segment offers IT staffing and consulting services, such as software enhancement, documentation, update, customer education, consulting, systems integration, maintenance, and support services. The Other segment provides purchasing and materials management, customer order processing, financial, e-commerce, and traditional manufacturing solutions. The company markets its products through direct and indirect sales channels to the apparel and other soft goods, retail, food and beverage, consumer packaged goods, durable goods, chemical and process manufacturing, and life sciences industries. American Software, Inc. was incorporated in 1970 and is headquartered in Atlanta, Georgia.
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